Actual VSN vs PPL relationship
This potential CASH component at closing is making things a little more complicated....
Rather than the Price Equillibrium being V = 0.4287 x P it's actually
V = 0.3172 x P + $4.8494
At the Current trading price of $44.12 for PPL, VSN is underpriced at $18.70.... If PPL stays unchanged, your effective price for VSN upon the closing of the deal would be $18.84 so youy can make an additional $0.14 by buying VSN right now at $18.70...
If you think PPL will keep going UP, you should buy PPL instead....
However, if you prediction is wrong you stand to lose more... If PPL goes down instead, you'd lose less (percentage-wise) if you're holding VSN... So that $4.85 cash component is acting a little like a cushion in a down market and acting as a drag on an up market....
The Question is What is going to happen the price of PPL from now to Closing a the begining of the Q4???
Will there be a market correction this summer???????
Good Luck